Earlier today the Attorney General provided some tips for homeowner’s affected by the storm. Agency Checklists thought that these might be good idea for agents to pass on to their clients dealing with the aftermath of Irene.
- Reach out to clients and offer to help them understand their homeowner’s insurance policies. Agents deal with these documents every day, most clients do not. In reality, many of your clients may have never even read a homeowner’s policy and so will have very little to absolutely no knowledge as to what these policies cover and do not cover.
- Explain to your clients the three types of insurance which can help in the event of a hurricane: Homeowner’s, Flood and Auto.
- Make sure to include an explanation of what are limits, deductibles and exclusions and how these can affect a client’s claim process.
- You can attach the Division of Insurance’s Guide to Understanding the Homeowner’s Insurance Policy Covering Your Home with a note to your client.
- Send out detailed information to clients on the insurance company who is handling either their homeowners, flood or auto and the claim numbers they should call.
- Create a list of tips for clients on “How to Handle Your Homeowner’s Insurance Claim.”
Here are Tips for Dealing With Your Homeowner’s Insurance Company courtesy of Attorney General Coakley’s office. These might be good place to start or else to reprint and send out to those clients in need of help and guidance.
- Notify your insurance company right away– Contact your insurance company and/or its agent as soon as possible to notify them of the damage. Find out exactly what your insurance policy does and does not cover.
- Prevent further damage– Take whatever reasonable steps you can to prevent further damage (such as putting a tarp on a leaking roof or siphoning water out of your basement). If you fail to take reasonable steps to prevent further damage to your home, your insurance company might refuse to pay for that further damage.
- Document the damage– Take pictures or video and prepare a list of lost or damaged materials and items. Keep a copy for yourself.
- Don’t discard damaged property– Do not throw away your damaged property without documenting the damage and ideally, allowing the insurance company to inspect the damage first.
- Save receipts– Save receipts for what you spend on clean up, repairs or substitute housing so that you can submit them to your insurance company.
- Hire a licensed contractor who has experience dealing with insurance claims- Try to hire a contractor who has a successful track record in dealing with insurance claims. Contractors often play an important role in negotiating with the insurance company.
- Keep notes– Keep written notes on your dealings with your insurance company and/or its agent concerning the claim.
- Ask about timing– Ask your insurance company whether there are any limits on how long you have to complete the repairs that the insurance company is paying for. See if you can get this information in writing.
- Don’t succumb to pressure– Do not feel pressured to accept what an insurance company offers you if you feel it is not a fair settlement. Do not be afraid to take the time to understand the process, get help when needed and advocate for your interests.
- Don’t sign documents unless you understand them– Be careful what you sign. Some consumers sign paperwork presented by clean-up companies in order to get clean-up work started, and realize later that their insurance company won’t pay for that work. Also, be wary of prematurely signing any kind of release from your insurance company. Be aware that some insurance companies consider a “proof of loss” a release form.
- Be wary of public adjusters– You may be approached by a public adjuster who may offer to handle your insurance claim on your behalf. Public adjusters are supposed to act as your representative in dealing with an insurance company in exchange for a percentage (typically 10%) of your insurance settlement. There is no requirement that you hire a public adjuster to handle your claim. Public adjusters may require you to enter into a contract with them before assisting you with your claim. Please read this contract carefully before signing it. Before hiring a public adjuster, it is advisable to contact the Division of Insurance to see if complaints have been made against the public adjuster.
- Contact the Attorney General– If you have questions or feel that you have been mistreated by an insurance company, agent or public adjuster, call the Attorney General’s Insurance & Financial Services Hotline at 1-888-830-6277. In addition to bringing cases against companies that engage in unfair or deceptive trade practices, the Attorney General’s Office offers free and voluntary mediation services to consumers who are experiencing difficulties with insurance claims.
- AUTO INSURANCE
- Not all auto insurance policies will cover damage to your vehicle from a hurricane. Damage will only be covered if you have purchased comprehensive coverage for your vehicle. Comprehensive coverage pays for accidental damage to your car that is caused by anything other than a car accident. Damage caused by falling trees, debris and flooding is typically covered by comprehensive coverage.
- Glass damage is also covered under comprehensive insurance coverage. Some policies do not require a deductible for glass; however, others include a separate glass deductible.
- If you experience damage to your vehicle, report the loss to your insurance company or its agent as soon as possible.
